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Mnuchin says U.S. Treasury cannot act on own to avert airline layoffs
Sep 24, 2020
WASHINGTON/CHICAGO (Reuters) - U.S. Treasury Secretary Steven Mnuchin told Congress on Thursday he cannot tap unused coronavirus lending authority to provide cash grants to help U.S. passenger airlines avoid thousands of layoffs.
U.S. Treasury Secretary Steven Mnuchin testifies during a Senate's Committee on Banking, Housing, and Urban Affairs hearing examining the quarterly CARES Act report to Congress, in Washington, DC, U.S., September 24, 2020. Drew Angerer/Pool via REUTERS
Airlines have been pushing Congress for months to back a new $25 billion bailout and extend payroll assistance to prevent passenger airline layoffs for another six months. The $25 billion payroll assistance in the “CARES” act approved in March required no layoffs by airlines through Sept. 30.
“Is there anything that you have under existing authorities, either the CARES act authorities, or prior law, that could help the airlines avoid these coming layoffs?” Republican Senator Tom Cotton asked Mnuchin.
“Unfortunately there is not,” Mnuchin said. He added the funding from Congress approved in March “literally saved the entire industry.”
Cotton said he had been asked by numerous airline workers about the status of the talks - and even got a hug from a flight attendant who recognized him on a recent flight.
Mnuchin said the Trump administration supports legislation introduced by Senator Roger Wicker, a Republican, that would provide $25.5 billion in airline payroll support to avoid layoffs for the another six months.
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